At my end, I believed hike or no hike from the FOMC is not a major concern anymore. We have to straighten our own house first. It is just too bad that the timing is against us. The US hiking int rates and the (revealing of the) scandals happening in Msia taking place at the same time. Just like the drop in oil price and the re-entering of Iran into the world mkts.

Two impt events I am looking fwd to :-

1) BNM OPR Mtg in September.

2) 2016 Budget in October.

...whereas the SGD is nearing the all-time high against our Ringgit at this moment.

forgot to refresh?!

4.2580

http://www.bloomberg.com/quote/USDMYR:CUR

could be also because of Singapore GE?

I see,... in tandem with the SGD then. Long live our RInggit,....

"The ratio of reserves to short-term debt: the most widely used metric for reserve adequacy is the Greenspan-Guidotti rule of 100% coverage of short-term debt. The rationale is that countries should have enough reserves to resist a significant withdrawal of short-term foreign capital. The level of Malaysia's short-term debt is equivalent to the level of FX reserves.

The ratio of reserves to broad money is less frequently used a measure of adequate FX reserves. This metric is designed to capture the risk of capital flight, in particular outflows of deposits of domestic residents. The upper limit of a prudent range for reserve holdings is 20%. Reserves in China and Korea do not cover 20% of broad money (they only cover 18% of broad money), but everywhere else the coverage is well above 20%.

Broadly, Asian FX reserves can be judged to be adequate, with the exception of Malaysia, where FX reserves now barely cover short-term debt"

From:
My Webpage

A GE generally creates uncertainty, hence pulling-out of foreign funds and weakening of the currency of the country experiencing the GE. Probably because of the 'silent following' of the SGD with the USD,... and the yesterday's news about the UAE not wanting to help us anymore with the debt repayment next month. Then most likely,.... default,.... where to get 975M in such a short time.

However, ours have said that the UAE HAS SIGNED an agreement with us saying that they will help us...

Most likely
BNM close @ 4.2490 at noon

I'm glad I have paid-up all my props and have no loans anymore in Msia, save and except for the Credit Cards. The only effects to me then would be Indirect Effects, if the Overnight Policy Rate is increased by BNM. But Indirect Effects are also killing,...

okay. understand

Nice not to have any loans!

The ony comfort is Ppl can't borrow MYR n short

The military will intervene in the Bersih 4 rally this weekend if the government declares a state of emergency, said Malaysian Armed Forces (ATM) chief Zulkifeli Mohd Zin.

"ATM will only intervene in the rally if the government declares a state of emergency.

"If the situation is categorised as a threat to public order, we will take over the role of the police in containing the situation," he was quoted as saying by The Star Online.

Read more: https://www.malaysiakini.com/news/310128#ixzz3jzzrHB7h


Believe this will give more jittery to foreign bond holders, a new US$/MYR record tomorrow?

Yes,... I keep encouraging myself this way, however,... the current state of world affairs and internal sentiment do not bode well,... threats are coming from many directions, legal cases are piling-up with everyone and everywhere,...

Surprise surprise !! RM has a good day today

US$4.2079
S$3.005
AUD3.0032
EUR4.7515
GBP6.516

That's quite a relief, perhaps a short term one.

Only when the monkeys sort out their dirty linen then RM will recover steadily

who?

The monkeys

crude oil comeback?